The Regulatory Authority has taken a historic decision cancelling auction of flats in a project by Union Bank of India and assured the buyers that the flats will be handed over to the buyers duly completing the construction. The Rajasthan RERA chairman Nihal Chand Goyal issued a 100-page order in this regard.
In 2014, SNG developers launched an apartment complex in Ashok Marg’s C-Scheme. The realtor entered into agreements with buyers and the agreements have been registered with the sub-registrar. Later, in 2016 the SNG Real Estate Developer, violating law, pledged the whole project to the Union Bank of India and borrowed Rs 15 crore from the bank. The promoter has failed to clear the loan leading to the bank initiating procedure to auction the flats to recover the loan amount.
On complaints from several persons, the RERA intervened and cancelled the auction and asked the bank to hand over the project under construction to it so that it would complete the execution and hand over the flats to buyers.
